Tax deduction when turning home occupied into investment property

I owned the 3 bed rooms house in Hoppers Crossing with home loan about 290K 7 years ago with the redraw facilities 84K. Until now, I nearly paid off the loan.I would like to buy another property and move in about 700K and make this current property as an investment property. After few research I found that I have to pay tax for current property (future investment property) if I got any rental income.

Is it possible that I can increase current property loan to max e.g (200K according to the bank) and have tax deduction when it turn into the investment property?